Land prices in the capital remained unchanged through 2011, according to the National Valuers Association.

Commercial land in Phnom Penh was estimated to be worth US$3,000 to $4,000 per square metre in 2011, while residential land was estimated at $1,500 to $2,000, corresponding with the previous year.

Although a recovery in the sector is underway, it will be a gradual process, according to Sung Bonna, president of the National Valuers Association. However, he added that land prices could be bolstered by the growth in property transactions.

“Transactions increased by 20 to 25 per cent through 2011 and we expect this to increase to 30 to 35 per cent this year. However if greater increases are experienced, land values should grow,” said Bonna, who is also chief executive officer of Bonna Realty Group.

“We saw the market hit rock-bottom in 2009, but hopefully we can build on the stability of 2011 and see increases in the next couple of years.”

Residential and commercial land prices soared up to 130 per cent during 2007 and a further 60 per cent during the first half of 2008, before dropping by around 50 per cent in the second half of the year, he added.

While reiterating Sung Bonna’s comments, Cheng Kheng, CEO of Cambodia Property Limited stated that the foreign ownership law, implemented in 2010, will boost land prices in the coming year.

“Land demand for investment and residential projects is returning to the sector, which, in turn will pave the way for increases in real estate and land prices across the country,” he said.